DIY is a growing trend in all areas of our lives including investing. While it’s a great concept, many are discovering it is increasingly difficult to sort through and manage the vast amount financial information and choices available. Even more difficult is discerning our own biases, prejudices, and fears surrounding our personal finances and expectations.
In a recent study evaluating a framework broken into three segments: Portfolio Value, Financial Value, and Emotional Value, the study determined that those who accept personal financial advice fare better in all three categories and enjoy roughly a 3% extra rate of return. That return is not added over a specific time frame and can vary year to year depending on circumstances. You won’t likely see an immediate 3% increase on your quarterly statements, but it is real none-the-less.
Guidance for growth and reaching your goals is obviously the whole point to working with an advisor. In the case of ministry professionals it’s even more important to work with an advisor with specific clergy expertise. However, the emotional value of trusted financial advice cannot be underestimated for almost every person. Peace of mind is crucial. And that comes only through confidence in the advice of your advisor. Having a sense of direction and accomplishment is a huge motivator for investors’ continued success. Working with a qualified advisor should also include appropriate education to help you make informed decisions.
Arguably, the most value an advisor provides is in behavioral coaching. We’ve seen this time and again. Everyone needs assurance and guidance from experienced and caring professionals when anxiety hits or the market wobbles. Using the key areas of portfolio building and behavioral coaching shows that 8 out of 10 people using an advisor had a better likelihood of achieving their goals. They felt better about their finances and had more confidence. We’re also very gratified by the results that our ministers receive with our specialized guidance. We continue to strive to deliver these kinds of results and invite your comments and inquiries.